Payday Loans – Options for Unemployed People

If a person is low on cash then budgeting can become a difficult task. However, if a person is unemployed, not only can he/she fall into debt, they can empty their savings accounts in a few days. There is plenty of help out there for the unemployed. You just need to find the right place to get it.

Following are different types of payday loans that can help unemployed people to borrow money on flexible terms:

Community Grant

These loans are for people who strive to live in a community. Community grants have no interest rates and do not need to be paid back. A family needs to follow the below requirements to qualify for a community grant:

  • The unemployed person has income support, JSA (Job Seeker’s Allowance). ESA (Support Allowance), Pension Credit or income-related employment
  • The person must not have more than £500 in their savings account

Community loan can be awarded to any one like single mothers, aging residential elders, on behalf of prisoners resettling in society, travel expenses within the UK and more.

1 Hour Loans

1 hour loans are specifically given by the banks in the UK. If a person has come into some unexpected emergency, they can apply online and will get the answer within seconds. If their application is approved, they get the money in an hour. The best part about this loan is that it does not require any credit check. This loan is usually given for bills.

Budgeting Loans

These loans are given to unemployed people who cannot manage their day-to-day living expenses. The best part about this loan is that it does not have any interest on it. However, they need to be repaid. The procedure for qualifying for a budget loan is hard and usually takes days for a person to get approved.

A person needs to follow the below requirements to qualify for a budgeting loan:

  • The unemployed person has income support, JSA (Job Seeker’s Allowance). ESA (Support Allowance), Pension Credit or income-related employment
  • The person can only apply if he/she has been on these benefits for twenty eight days
  • The person or anyone else in the family must not have more than £1,000 in their savings account (If the amount exceeds, the budgeting loan amount will be deducted accordingly)

Budgeting loans are given for:

  • Clothing
  • Household equipment and maintenance
  • Rent
  • Expanses for stating a new job
  • Furniture
  • Travelling expenses
  • Maternity expenses
  • Funeral expenses

Do not apply for maternity and funeral grant through budget loans as the UK gives these loans in a separate category, which do not need to be repaid.

Crisis Loans

These loans are given to people after they are thoroughly researched by the benefit office. Crisis loans can be applied for three times within a year.

Crisis loans are usually given for rent, travel expenses and emergency credit repayment.

An unemployment loan takes time to pass but the benefits are better than taking on a basic payday loan, which can put you in debt if you do not find a job for the next few years.